Uber Incorporates Zipline Drones into Its Eats Delivery System

Uber has unveiled a partnership with Zipline, a drone delivery company, with the ambitious goal of achieving one million drone deliveries per day by the end of 2029.

On Monday, both companies announced that Zipline’s drones will initiate their first deliveries via the Uber Eats platform before the year concludes. These initial deliveries will occur in Zipline’s established markets, with intentions to expand into “multiple U.S. cities.”

The specific amount of Uber’s investment remains undisclosed.

To enhance the Uber Eats experience, Uber has been collaborating with various drone delivery services. The ride-hailing giant is re-evaluating its original business concept for robotaxis and other autonomous vehicle offerings, while aiming to incorporate a wide array of companies into its platform.

This approach has enabled Uber to maintain a leading position in the evolution of technology, even as it scales back on its initiatives such as the aerial ride-sharing service, Uber Elevate, and the Uber Autonomous Technologies Group dedicated to self-driving vehicles. Investments are pivotal to this strategy, with Uber committing over $10 billion to multiple autonomous vehicle partners.

However, this strategy is not without its hurdles. Recently, Uber has encountered a disagreement with one of its key partners, Waymo, raising concerns that they might end their partnership once their contracts lapse in 2028. Moreover, Uber and Waymo are currently involved in disputes over escalating differences regarding autonomous vehicle regulations.

Previously, Uber experimented with drone delivery through its Elevate division. Toward the end of last year, the company revisited this concept by announcing a partnership with Israeli startup Flytrex, involving a modest investment.

Uber anticipates that Zipline’s drones will be able to deliver orders on the Uber Eats platform in about five to ten minutes. “True quick commerce is emerging as a more significant market than the traditional food market,” remarked Uber CEO Dara Khosrowshahi in an interview with the Wall Street Journal. “We view this as a crucial catalyst for the next growth phase for Eats.”

Based in San Francisco, Zipline has recently completed a significant Series H funding round, raising $800 million and boosting its valuation to $7.6 billion.

“Every major transportation revolution has redefined living habits, changed business methods, and driven economic growth,” stated Zipline co-founder Keller Cliffton. “By teaming up with Uber, we’re forging a path toward a future where acquiring essential goods is as fast and easy as sending a text, no matter where you are.”